Pipes for the proposed Dakota Access oil pipeline, that would stretch from the Bakken oil fields in North Dakota to Patoka, Ill., arrive by rail Saturday, May 9, 2015, to a staging area in Worthing, S.D. The proposed oil pipeline will traverse North and South Dakota, Iowa and Illinois. (AP Photo/Nati Harnik) less

Pipes for the proposed Dakota Access oil pipeline, that would stretch from the Bakken oil fields in North Dakota to Patoka, Ill., arrive by rail Saturday, May 9, 2015, to a staging area in Worthing, S.D. The ... more

Photo: Nati Harnik / Associated Press

Image 16 of 19

This May 24, 2012 file photo shows some of about 500 miles worth of coated steel pipe manufactured by Welspun Pipes, Inc., originally for the Keystone oil pipeline, stored in Little Rock, Ark. The US is extending indefinitely the amount of time federal agencies have to review the Keystone XL pipeline, the State Department said Friday, likely punting the decision over the controversial oil pipeline until after the midterm elections. The State Department didnt say how much longer it will grant agencies to weigh in, but cited a recent decision by a Nebraska judge that overturned a state law that allowed the pipeline's path through the state, prompting uncertainty and an ongoing legal battle. Nebraskas Supreme Court isnt expected to rule for another several months and there could be more legal maneuvering after that, potentially freeing President Barack Obama to avoid making a final call on the pipeline until after the election in November. (AP Photo/Danny Johnston, File) less

This May 24, 2012 file photo shows some of about 500 miles worth of coated steel pipe manufactured by Welspun Pipes, Inc., originally for the Keystone oil pipeline, stored in Little Rock, Ark. The US is ... more

Photo: Danny Johnston / Associated Press

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FILE - In this Wednesday, Feb. 1, 2012, file photo, miles of pipe ready to become part of the Keystone Pipeline are stacked in a field near Ripley, Okla. The pipeline battle is just the start of President Barack Obama's fight with Congress on climate change. (AP Photo/Sue Ogrocki, File) less

FILE - In this Wednesday, Feb. 1, 2012, file photo, miles of pipe ready to become part of the Keystone Pipeline are stacked in a field near Ripley, Okla. The pipeline battle is just the start of President ... more

Photo: Sue Ogrocki / Associated Press

Image 18 of 19

Pipes for the proposed Dakota Access oil pipeline, that would stretch from the Bakken oil fields in North Dakota to Patoka, Ill., are moved by truck Saturday, May 9, 2015, at a staging area in Worthing, S.D. The proposed oil pipeline will traverse North and South Dakota, Iowa and Illinois. (AP Photo/Nati Harnik) less

Pipes for the proposed Dakota Access oil pipeline, that would stretch from the Bakken oil fields in North Dakota to Patoka, Ill., are moved by truck Saturday, May 9, 2015, at a staging area in Worthing, S.D. ... more

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HOUSTON — The layoffs that Royal Dutch Shell began last year will increase by a third to 10,000 employees and direct contractors in 2016 once it closes its impending acquisition of BG Group.

The job cuts come as the firms curb operating costs and try to extract synergies from their impending merger. Shareholders will vote to approve or reject the deal next week.

Reporting preliminary fourth-quarter earnings on Wednesday, Shell said it cut $4 billion in operating costs last year and expects to shake out another $3 billion in costs this year. The company says synergies – cutting redundant costs as part of its corporate merger – will support its efforts to cope with the worst downturn in half a century.

“Shell’s drive to improve competitive performance is delivering at the bottom line,” Shell CEO Ben van Beurden said in a written statement.

Shell last year had announced it will cut 7,500 jobs and says it will cut another 2,800 jobs after its BG Group deal closes. The Anglo-Dutch oil giant and BG Group, a British gas producer, had a combined 99,000 employees at the end of 2014, regulatory filings show.

In the fourth quarter, Shell collected between $1.6 billion and $1.9 billion in earnings on a current cost of supplies basis, which is a measure of net income used by some oil companies. That’s down from $4.2 billion in the same three-month period in 2014.

Income from Shell’s oil exploration and production business dropped from $1.73 billion to a range of $400 million to $500 million in the fourth quarter of 2015. Shell’s downstream income held steady from $1.55 billion to a range of $1.4 billion to $1.6 billion.

As crude sinks further below $30 a barrel on Wednesday, Shell said it plans to peel spending plans back further. Its capital investment budget combined with BG Group’s will come in at $33 billion this year, about 45 percent lower than its peak in 2013.

Shell expects its acquisition of BG Group, subject to shareholder approval, will close in a few weeks. The transaction was originally valued at more than $70 billion but the price tag fell as Shell’s share price declined amid anemic crude prices. The Big Oil firm plans to sell off $30 billion in assets over the next three years, on top of $20 billion in sales last year.